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Hey, thank you all for so quickly coming to my assistance- in the world of adoption, you speed and courtesy and kindness was a great breath of fresh air!!!
But, alas, I am still befuddled. Let me try again-
I understand, like one of you wrote, a tax credit is a tool whereby one's tax bill (directly) is deduced. It is not a deduction of taxable income, but the amount of mony spent (up to 10k) is taken directly off of one's tax bill.
Also I understand that expences in 2002 can be claimed in 2002, even if my adoption is finalized in Jan. of 2003, which is the case.
But my situation- I will have a total tax bill of roughly 3k, with total available credits of 10k.
It would seem I could only retrieve 3k worth of my 10k in expences. But I would have to spread my remaining 7k over the next 5 years.
My "Tax Cut" program stated I could claim all the credit this year and get a whopping return this year. This program updates itself, and recognizes the new laws and the new credit- so it has left me a bit confused.
Do any of you all know definitively if one can retrieve more than one puts into our tax system with this credit? (Like the "earned income tax credit")?
Thanks again!!
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